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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Dematerialisation

After the issuer confirms a demat request, in which manner does the depository credit the investor's account?

Once the issuer or its RTA confirms the demat request, the depository credits the securities to the investor's beneficial owner account held with the DP. The issuer cancels the physical certificates, and banks or exchanges have no role in crediting the securities.

  1. AThrough the DP, the depository credits the securities to the investor's BO account after the issuer confirms the requestCorrect
  2. BThe issuer credits securities directly into the investor's bank account
  3. CThe stock exchange credits shares after the next settlement
  4. DThe DP issues new certificates in electronic form

Explanation

On confirmation, the depository credits the securities to the BO account, and the DP gives the credit. The issuer's role is to confirm and cancel the certificates. Banks and exchanges play no role in the credit.

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